Trident hits upper circuit after Ind-Ra revises outlook to Positive on its NCDs; Affirms ‘IND AA'

9 Mar 2022 , 02:15 PM

Trident Limited informed the exchanges that its long-term credit rating for Non-Convertible Debentures, has been upgraded by India Ratings and Research (Ind-Ra), a Fitch Group Company to IND AA / Positive.

Ind-Ra has revised Trident’s Outlook to Positive from Stable while affirming the Long Term Issuer Rating at ‘IND AA’.

At around 2.18 pm, Trident Ltd was trading at Rs52.40 per piece up by Rs2.45 or 4.9% (5% upper circuit) from its previous closing of Rs49.95 per piece on the BSE.

“The Outlook revision reflects Ind-Ra’s improved expectations for Trident’s credit metrics over FY22-FY24, despite a higher cash outflow for capex and dividends as against the estimates in March 2021, supported by a strong operational performance amid a continued high demand over 9MFY22.

Successful ramp-up of the company’s additional yarn capacities (by around 12%), operational since July 2021, has enabled an improvement in the scale of operations and higher absolute EBITDA generation, leading to improved ROCE expectations for FY22. Also, the paper segment is likely to boost the margins over the medium term as schools and offices have opened up,” company shared Ind-Ra’s rating rationale in a filing on Tuesday.